Bitcoin [BTC] is riding a bull wave unlike anything else, already recording a 10-month high. With the upswing not looking to slow down anytime soon, several factors have contributed to this rise. If these factors sustain themselves, the king coin could be in the green for a long time.
One factor that is speculated to have contributed to this rise is the ongoing Consensus 2019 Conference in New York. This was suggested so by Fundstrat’s Head of Research, Tom Lee. Given the exhaustive nature of this catalyst, can one conference attended by the who’s who of cryptocurrency and blockchain have such a buoyant effect on the price of Bitcoin and the collective market?
Lee tweeted,“Definitely think @coindesk #consensus2019 is a major factor (not only) for recent parabolic bitcoin move, especially considering higher overall quality of attendees at the largest crypto conference”
Consensus 2019 began on May 13 at exactly 0700 ET, when Bitcoin was trading at just under $7,100. However, in just 10 hours, the price shot up by 13.77 percent to reach $8,045. The latter price point was realized at 1900 ET, just one hour after the conclusion of Day 1. Interestingly, after Day 1 was wrapped up, Bitcoin dropped to $7,700. However, it has since recovered to go above $8,000, at press time.
Based on the price chart, there is truth to Lee’s speculation. However, causation cannot be implied by looking at just one isolated case. Hence, it is deemed necessary to chart Bitcoin price correlation to previous Consensus conferences.
The Coindesk conference for 2018 was held between May 14 and 16, while the market was reeling under the bears of the early-crypto winter. Despite the decline from well over $15,000 to below $8,300 at the beginning of May, Consensus did play its bullish role in 2018 as well. On May 14, Bitcoin rose from $8,413 to $8,855 within less than 8 hours, sustaining $8,500 till the close of the conference. However, come the end of the week, Bitcoin almost fell below $8,000 owing to correction.
On May 13, BTC price was $1,700 and rose by a whopping 58 percent to reach $2,700 by May 24. However, a price cliff was seen soon after, with Bitcoin dropping below $2,000 a day after the conference.
In both cases, the price rose before and during the Consensus conference, but experienced a non-drastic correction immediately after. Given how the market has rallied prior to the recent conference, a sustained rise is on the cards for the past two days, followed by a correction. Although, market conditions during the past conferences have all been starkly different, some correlation can be gathered. However, a single threat of causation cannot be inferred.